E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Could Strengthen Over 8799.25, Weaken Under 8773.75

March E-mini NASDAQ-100 Index futures are trading sharply lower in the pre-market session on Friday, after the U.S. confirmed an air strike that killed a top Iranian commander. The index touched a new all-time high earlier in the session before the news hit. The steep break has put the index in a position to post a potentially bearish closing price reversal top.

At 09:12 GMT, March E-mini NASDAQ-100 Index futures are at 8777.00, down 114.00 or -1.28%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed early in the session when buyers took out yesterday’s high.

The main trend will change to down on a trade through the last main bottom at 8189.25. This is not likely, however, the closing price reversal top will indicate the selling is greater than the buying at current price levels. This chart pattern won’t change the main trend to down, but if confirmed, this could trigger the start of a 2 to 3 day break or a 50% to 61.8% correction of the last rally.

The minor trend is also up. A trade through 8691.25 will change the minor trend to down. This will also shift momentum to the downside.

The minor range is 8691.25 to 8907.25. Its retracement zone at 8799.25 to 8773.75 is currently being tested. Crossing to the weak side of this zone will indicate the selling is getting stronger.

The second minor range is 8319.50 to 8907.25. Its 50% level at 8613.25 is the next downside target.

The main range is 8189.25 to 8907.25. Its retracement zone is 8548.25 to 8463.50 is a value area. Buyers are likely to step in on a test of this range.

Daily Swing Chart Technical Forecast

Based on the early price action and the current price at 8777.00, the direction of the March E-mini NASDAQ-100 Index the rest of the session on Friday is likely to be determined by trader reaction to the minor retracement zone at 8799.25 to 8773.75.

Bearish Scenario

A sustained move under 8773.75 will indicate the presence of sellers. If this move creates enough downside momentum then look for a potential break into the minor bottom at 8691.25.

Taking out 8691.25 could trigger a break into the series of retracement levels at 8613.25, 8548.25 and 8463.50.

Bullish Scenario

A sustained move over 8799.25 will signal the presence of sellers. The first minor upside target is 8841.25, followed by the high at 8907.25.